WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC-WEB EXTRA: 3 best and worst ways to get cash

WEB EXTRA: 3 best and worst ways to get cash

By Kristen Miranda

CHARLOTTE, NC (WBTV) - Credit card companies aren't making it easy on us these days, and cash is hard to come by.  What if you need cash fast, though, whether to pay a bill or buy some Christmas presents?  What are the safest ways to get your hands on it?

Let's start with the top three ways to avoid.  Stay away from easy loans.

Whether it's a payday loan where you prove you have a job by producing a paycheck and you get a loan, or a title loan where you show the title of your car and get cash based on the value of it, both are bad ideas.

With a title loan you're sometimes paying 50 to 70 percent interest and if you miss a payment they can take your car.

Payday loans are even worse with interest often adding up to 100 percent of the original amount of the loan.

"The average time people find themselves in one of these payday loans is 8 months and they end of spending as much as seven times as that original loan," says Tom Bartholomy of the Better Business Bureau of the Southern Piedmont.

Keep in mind both payday and title loans are illegal in North Carolina but totally legal just over the border in South Carolina.

And the third worst way to get money in a hurry is to take a cash advance on your credit card.  It's quick money but there's a hefty fee and double digit interest that accumulates quickly.

So what's the number one best way to get cash now?

Sell whatever you have that you don't need anymore. Use Craigslist or eBay.  You could even do what Curt Shepard did.  He sold some gold.

"Our daughter is expecting so we thought we'd sell this and buy some furniture for the nursery," Shepard said.

In fact one small handful of gold bracelets and necklaces could get you as much as $400 at a reputable dealer.  Our experts caution, though, not to send your gold away to one of those mail-order services you see on television.  There have been horror stories of people sending their gold away and getting nothing in return.

The number two best way to put some money in your wallet is to borrow. Not from a bank  but from relatives or friends.  To do it right and keep the peace in your family write it down.  Essentially it's a promise that you'll pay it back at 1% interest a month. That avoids arguments later.

Third, take a loan out on your IRA. You can take a penalty free and tax free withdrawl as long as you pay it back in 60 days.

However, financial experts say the best strategy is a combination of the best ways.

"You can get a loan out of your IRA and then go get a part time job to pay it back in 60 days and you get out of this pretty clean," says financial planner Stephen Pulley.

Throughout our research we found many good and bad ways to get cash fast.  For more ideas, click WEB EXTRA: Best and worst ways to raise cash fast.